Investor Presentaiton
Oil Production Trends in Russia Create Long-term Demand for High-
End Oil & Field Services
Supported by increasing development of greenfields and
hard-to-recover reserves
-CAGR'19-25(a): +15.6%
TMK
Russian total oil output
11.5
11.0
MMbpd
10.5
10.0
9.5
9.0
Jan Feb
Mar Apr May Jun
Jul Aug Sep Oct
Nov Dec
2017
2018
-2019
2020
Source: Interfax, Info TEK
OCTG demand is relatively stable supported by existing
level of production and development of greenfields...
Meters (mln)
50
3.0
40
40
2.3 2.3
2.4
2.3
2.4
2.5
2.2
2.0
2.0
1.9
30
1.8
2.0
1.7
1.6
1.5
20
20
10
2010
2012
2014
2016
2018
2020F
1.5
1.0
2022F
OCTG demand (RHS)
Meters drilled for oil & gas (LHS)
Source: Interfax, Info TEK, Spears & Associates, DPO, TMK estimates
TMK
Tonnes (mln)
(% of total oil production)
22%
16%
14%
14%
11%
11%
8%
8%
8% 9% 8%
8%
8% 9%
9%
6%
4%
1%
2017
2018 2019F 2020F
■Greenfield production
2021F 2022F 2023F 2024F 2025F
■Hard to recover reserves production
Source: RPI
Note: (a) corresponds to greenfield and hard-to-reserve production CAGR '19-25
OCTG premium products demand is supported by
high share of horizontal drilling
Russian drilling, kmpd
80
68
68
60
km/d
76
76
75
73
70%
60
50
57
54
49
44
53
53
60
60%
50%
53%
51%
40
40
48%
40%
41%
30%
36%
33%
20
30%
20%
20
21%
10%
12%
14%
0
0%
2011 2012 2013 2014
(a)
Total drilling
2015
2016 2017 2018 2019 1H20
--% of horizontal drilling (RHS)
Note: (a) development drilling for oil
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